Tower Resources drills 1.95 g/t gold over 32 metres at Rabbit North, British Columbia

Tower Resources Ltd. [TWR-TSXV] reported results of the recent, five-hole diamond drilling program on the Lightning zone on the 100%-owned Rabbit North property near Kamloops, British Columbia, between New Gold’s New Afton underground copper-gold mine and Teck’s Highland Valley open pit copper-molybdenum mine.

As reported in the July 13, 2022 press release, the drilling was based on the assumption that the strike of the Lightning Zone was north-northwest rather than east-northeast as initially assumed. Of the five new holes, Nos. RN22-034 to 038, No. 034 was drilled 50 metres south-southeast of discovery Hole 026 (1.40 g/t gold over 95 metres, including 4.42 g/t over 19.3 metres, Holes 035 to 037 were drilled 50-80 metres north-northwest of the discovery hole and Hole 038 was collared southwest of the discovery hole to undercut it by ~50 metres.

As further reported, the undercut hole, No. 038, intersected 83.2 metres of similar alteration, including sections of pyritic vein-breccia similar to but more strongly sheared than the breccia hosting the high grade, 4.42 g/t gold mineralization in the overlying discovery hole. With the gold mineralization in the Lightning Zone being so clearly shear controlled, the apparent increase in deformation with depth was considered positive.

As a result, alternating mineralized and unmineralized sections were encountered in Hole 038 instead of a long, continuously mineralized zone as in Holes 026, 28 and 29. The best section averaged 1.95 g/t gold over 32 metres.

Stu Averill, a director of the company, explained the short and long-term implications of these findings: “The low gold results obtained from the north-northwest trending shear zone were unexpected in view of its promising alteration signature and are obviously disappointing. The silver lining is that these results also show that the Lightning Zone accounts for only the western edge of the 400-metre wide Dominic Lake gold grain dispersal train, so finding it was serendipitous and actually a bonus. The approximate location of the main gold source is now more obvious than it was a year ago so we should be ready to drill it soon.”

The surface extent of the Lightning Zone beneath the till appears to be about 50 x 100 metres, roughly the area of a football field. The zone has been traced to a vertical depth of approximately 140 metres and appears to be approximately the same size at this level.

Significantly, the QFP dyke in Hole 038 is strongly anomalous in gold and a 1.6-metre zone bordering its lower contact averages 2.8 g/t.

A year ago, when the Lightning Zone was discovered, the existing interpretation of the bedrock geology beneath the till was untrustworthy because no outcrops are present. The 15 holes that Tower has since drilled show a very different picture. The Lightning Zone is on the north side of a previously unknown diorite plug ~300 metres in diameter, a satellite of the Durand Stock to the northeast.

The gold content of the till in the new Central Train 400 metres west of the Dominic Lake Train is three times higher than that in the latter train even though the number of gold grains per sample is lower. Therefore, Tower plans to drill this target first while further refining the location of the main source of the Dominic Lake Train as a priority in a planned drill program of 2,000 metres in early 2023.

Simultaneously, Tower plans to collect additional till samples on lines 50 to 150 metres up-ice from the sampled limit of the Dominic Lake Train to pin down its source.

Tower also announced a non-brokered flow-through private placement for aggregate gross proceeds of up to CAD$700,000. Under the offering, the company will issue flow-through units at CAD$0.18 per FT Unit. Each FT Unit is comprised of one common share that qualifies as a flow-through share and one non-transferable common share purchase warrant. Each warrant is good to buy one non-flow-through common share in the capital of the company at price of CAD$0.36 per common share for 24 months. Proceeds will be used for expenditures to carry out exploration programs on the company’s Canadian properties.

In connection with the offering, the company may pay finder’s fees equal to 6% of the gross proceeds from the offering and finder warrants equal to 6% of the total number of FT Units sold by an eligible finder under the offering, each finder warrant good to buy one common share at a price of CAD$0.18 for 24 months.

The company’s key exploration assets, both in B.C., are the Rabbit North copper-gold porphyry project located between the New Afton copper-gold and Highland Valley copper mines in the Kamloops mining district and the Nechako gold-silver project near Artemis’ Blackwater project.